[JURIST] French authorities questioned a second "rogue trader" Friday in their investigation into the massive financial losses of French Bank Societe Generale [bank website], Le Monde reported Friday. The French newspaper reported that French authorities questioned the undisclosed trader about `his relationship with Jerome Kerviel [BBC profile], who stands accused of "breach of trust," "falsifying and using falsified documents," and "breaching IT access codes" relating to $73 billion worth of unauthorized trades [AP timeline] he made while working for Societe Generale. Kerviel was released on bail [JURIST report] last week, after he voluntarily turned himself over [JURIST report] to French police. Le Monde also reported that the second trader questioned by authorities worked for Societe Generale affiliate, Fimat [bank website].
The bank, which lost $7 billion when it was forced to unload the fraudulent positions, has filed a criminal complaint against Kerviel, and described the methods he supposedly used to commit the fraud in an explanatory note [PDF text]. Kerviel has maintained his innocence and says that he is being made a scapegoat [Telegraph report] by the bank, which he alleges was aware of his activities. Additionally, BusinessWeek reports [text] that the Eurex derivatives exchange [exchange website] warned Societe Generale in November about Kerviel's unauthorized transactions. AP has more.
11:57 AM ET – AP is reporting that a court in Paris has ordered Kerviel to remain in jail while the police investigation into the alleged fraud continues.